Additional Notes for Deferred Members of the 2006 & 2015 Police Pension Scheme
These notes accompany your 2024 deferred benefit statement. Some of the information applies to all the Police schemes but some information differs between the schemes. Please read all the note which are relevant to the scheme you are in.
Taking pension before NPA (2006 and 2015)
You can give up some of your pension for a lump sum. How much lump sum you get will depend on your age and how much pension you give up. This statement shows your benefits with and without exchanging pension.
Note that since this statement has been produced, the factors used to calculate the maximum lump sum have charged. Please contact us for more information.
Taking pension after NPA (2015 scheme)
If you take your pension before your Normal Pension Age (NPA), reductions will be applied to your pension. At any time, the Government may change the factors and methodology used to calculate the reductions and increases which may result in a corresponding change to the pension you are paid at retirement.
Giving up pension for lump sum (2006 scheme)
You can give up some of your pension for a lump sum. How much lump sum you get will depend on your age and how much pension you give up. This statement shows your benefits with and without exchanging pension.
Note that since this statement has been produced, the factors used to calculate the maximum lump sum have charged. Please contact us for more information.
Giving up pension for lump sum (2015 scheme)
You can give up some of your pension for a lump sum. How much lump sum you get will depend on your age and how much pension you give up. This statement shows your benefits with and without exchanging pension.
Note that since this statement has been produced, the factors used to calculate the maximum lump sum have charged. Please contact us for more information.
Pensions and tax at retirement
The Lifetime Allowance (LTA) was the amount you could take from all your pension savings without facing a tax charge. The Finance Act 2024 abolished the LTA in full with effect from 6 April 2024. The LTA has been replaced by two new tax allowances.
Lump Sum Allowance (LSA) - The LSA is a limit on the total amount of tax-free cash an individual can take from all their pension savings. It is set at £268,275 and there is no provision in the legislation for this limit to rise.
Lump Sum and Death Benefit Allowance (LSDBA) - The LSDBA is a limit on the amount of tax free cash that can be taken by an individual and the lump sum death benefits that can be paid in respect of an individual when they die. It is set at £1,073,100 and there is no provision in the legislation for this limit to rise.
Transitional tax-free amount certificate (TTFAC)
If you took payment of any pension or lump sum before 6 April 2024, these payments will have used up part of your lump sum allowances. Under HMRC rules, we must assume that you took the maximum lump sum allowed.
If you took less than the maximum lump sum allowed, you can get a TTFAC. The certificate sets out the total lump sums you have received. We will then use these amounts to calculate how much of the lump sum allowances you have used, rather than assuming you have taken the maximum amount. For most members, a TTFAC will have no effect on the lump sum they can take from the LGPS. The allowances will generally only affect members who have built up very large pensions.
If you hold a TTFAC, you must send it with your retirement declaration form. If you have sent us a TTFAC, you do not need to tell us about pensions or lump sums taken before 6 April 2024.
If you are thinking about applying for a TTFAC, you may wish to seek specialist independent financial advice. Some members could be worse off if they apply than they would be without a certificate.
- Age discrimination court case
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On 1 April 2022 the Public Service Pensions and Judicial Offices Act 2022 (PSPJOA) came into force, and confirms that members will be returned to their final salary schemes for the period 1 April 2015 to 31 March 2022 in powers that will be enacted by 1 October 2023. This is known as the retrospective remedy.
If your pension record is affect by the McCloud remedy, you will receive a Remedial Service Statement (RSS) instead of your usual ABS.
If you have multiple pension records, you may receive an ABS for some records and an RSS for others depending on your eligibility for the McCloud remedy.
For more information please see: McCloud/Sargeant/Age Discrimination
- Protect yourself from pension fraud
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You are not permitted to transfer your deferred pension to a scheme offering flexible benefits (e.g. a personal pension). However, if you wish to transfer to a defined benefit scheme, you should be aware that pension fraud is increasing. Scam tactics include:
- websites impersonating well-known brands,
- promise of high investment returns,
- pressure to act quickly,
- free pension reviews,
- access to your pension before age 55,
- contact out of the blue.
Many scammers are using social media and other online channels to offer people "too good to be true" incentives such as free pension reviews, early access to their money, or time limited offers. Lured by these attractive offers, people are coerced into transferring their savings into a scam scheme designed to fleece them of their savings.
Please read the guidance document produced by The Pensions Regulator.
- Previous Years' Benefit Statement Notes